After Completing Sales Training for a Large Company, It Is

question 145

Multiple Choice

After completing sales training for a large company, it is expected that the salesperson will generate a sale on at least 15 percent of the calls he or she makes. To make sure that the sales training process is working, a random sample of n = 400 sales calls made by sales representatives who have completed the training have been selected and the null hypothesis is to be tested at 0.05 alpha level. Suppose that a sale is made on 36 of the calls. Based on these sample data, which of the following is true?

• A) The null hypothesis should be rejected since the test statistic falls in the lower tail rejection region.
• B) The null hypothesis is supported since the sample results do not fall in the rejection region.
• C) There is insufficient evidence to reject the null hypothesis and the sample proportion is different from the hypothesized proportion due to sampling error.
• D) It is possible that a Type II statistical error has been committed.

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Definitions:

Applied Manufacturing Overhead

The portion of manufacturing overhead costs allocated to each unit of production, based on a predetermined rate.

Applied Manufacturing Overhead

Applied Manufacturing Overhead refers to the estimated overhead costs assigned to individual products based on a predetermined rate and actual activity levels.

Overhead

The indirect costs of running a business that are not directly associated with the production of goods or services, such as administrative expenses and rent.

Underapplied

A situation where the allocated or budgeted costs are less than the actual costs incurred, typically in the context of manufacturing overhead.